Credit and Loans — Unit test Answers

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What are possible advantages and disadvantages of using automatic withdrawal to pay bills? Check all that apply.

A
not having to keep track of the balance in a checking account
B
avoiding late payment fees
C
having to share your account information
D
not having to find a stamp and a mailbox
E
not knowing when the payment will be taken out of your account
F
possible overdraft fees if there is not enough money in the account to cover the payment amount
G
having to pay a fee for the service
2
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Read the sample advertisement.Lose body fat and feel healthier with our proven supplement, Edgozene! Losing weight is easy with Edgozene! Just take two pills before each meal. You’ll start to feel full and won’t eat as much. No other diet pill offers what our product does and, if you buy now, you can get two bottles of Edgozene for just $29.95!

A
for a limited time
B
two bottles for $29.95
C
our proven supplement
D
no other diet pill offers
3

Emily is deciding whether to buy the same designer jacket her friends have. The jacket is much more expensive than a similar one from a lesser-known brand.Which questions should she consider before she buys the jacket? Check all that apply.Is advertising influencing her?What are her motivations?Has she compared prices?Is she buying at the right time?Will her sister like the jacket too?

A
Is advertising influencing her?
B
What are her motivations?
C
Has she compared prices?
D
Is she buying at the right time?
E
Will her sister like the jacket too?
4

The chart describes four people’s credit histories.Creditworthy CriteriaNameDescription of Credit HistoryEllieHas more debt than earningsCollinPays only some of his bills every monthJacobHas made three late payments in the past yearEeshaPays more than the minimum payment each monthWhich person is creditworthy?EllieCollinJacobEesha

A
Ellie
B
Collin
C
Jacob
D
Eesha
5

Read the scenario.Yuri has $100 to spend at the store. He spots a pair of designer jeans with a $98 price tag on them but knows that he can buy three pairs of $30 jeans for about the same price. He still decides to buy the $98 pair.

A
emotional spending
B
confused sense of needs and wants
C
greedy spending
D
conspicuous consumption
6

Yuri wants to pay for his new chair using a check. What must he consider before using that method of payment?

A
Yuri must check his credit history.
B
Yuri must know the interest rate on a furniture loan.
C
Yuri must be sure he has enough left in his checking account for any expenses and automatic payments.
D
Yuri must check his credit card balance.
7

Melanie is very concerned with avoiding late fees. The table shows her choices for paying her bills. MethodBill Payment Methods1Pay by check2Pay online3Set up automatic payments4Pay by telephoneWhich method should she use to pay her bills? Enter the response using the corresponding method number.

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